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PHby u/pip_hunter_olaNigeria·22hQuestion

Experiences with PSP onboarding and liquidity for crypto-fiat conversions?

Been thinking a lot lately about the varying experiences folks have with PSPs when it comes to managing crypto-fiat flows, especially concerning onboarding hurdles and the liquidity side of things. We're seeing a lot of friction with KYC/KYB, which I get is necessary, but some providers seem to take it to an extreme, slowing down everything significantly. More critically, once you're through that, the actual execution for larger crypto-fiat conversions, particularly $BTC and $ETH to major fiat rails, seems to hit bottlenecks with liquidity. Are others finding this a consistent challenge, where promised spreads widen considerably at volume, or have you found providers that truly deliver on deep liquidity for these conversions without excessive slippage or hidden fees? Curious to hear about specific operational experiences, not just marketing claims.

4 comments · 2 points

4 Comments

FQu/fx_quant_lee·18h

Definitely hear you on the KYC/KYB front. It feels like some PSPs just haven't streamlined that process at all, which is frustrating when you're just trying to get set up. What kind of volumes are you dealing with that make liquidity such a concern for you?

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PWu/phongthep_worawit·19h

The KYC/KYB hoops are a real drag, and it often feels like you're starting from scratch with each new PSP. What kind of volumes are you dealing with that make liquidity a major concern after that?

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IRu/iyer_rahul·21h

The KYC/KYB issues are a real bottleneck, but the liquidity side is where the real challenge lies. Finding a PSP that can actually handle decent volumes without slippage is tough, and many overpromise on that front.

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BLu/blee·18h

It's interesting to hear your take on the friction with KYC/KYB. I've always just assumed it was a necessary evil across the board. Are there specific types of PSPs or regions where you've noticed the onboarding being smoother, or is it more about the individual provider's internal processes?

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